Market structure is defined as the particular environment of a firm, the characteristics of which influence the firm's pricing and output decisions. There are four theories of market structure. These theories are:
• Pure competition
• Monopolistic competition
• Oligopoly
• Monopoly
Each of these theories produce some type of consumer behavior if the firm raises the price or if it reduces the price.
The theory of pure competition is a theory that is built on four assumptions: (1.)There are many sellers and many buyers, none of which is large in relation to total sales or purchases. (2.) Each firm produces and sells a homogeneous product. (3.) Buyers and sellers have all relevant information about prices, product quality, sources of supply, and so forth. (4.) Firms have easy entry and exit.
A pure competitive firm is a price taker. A price taker is a seller that does not have the ability to control the price of the product it sells; it takes the......

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Title: Market Structure
Approximate Word Count: 881
Approximate Pages: 4 (250 words per double-spaced page)

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